January 16, 2008

Student-Loan Companies Sit and Watch as Regulatory Machinery Eats Away at Profits

By Paul Basken

Washington

The nation's student-loan companies have built their businesses with the help of billions of dollars in federal subsidies, creative interpretations of regulatory loopholes, and personal gifts to college officials. Their representatives sat Tuesday through the bureaucratic process of watching those tools get slowly taken away.

For a second straight day, representatives of colleges and student-advocacy groups dominated an Education Department advisory panel charged with drafting

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